Chatime Malaysia Franchise Contract Terminated and Bryan Loo Seeks Legal Advice
There is a big news among the franchise and food industry in Malaysia. According to theedgemarkets.com, Chatime’s Taiwanese franchisor seizes control from Malaysian sole franchisee.
This is the news report from theedgemarkets.com.
“Chatime’s Taiwanese franchisor seizes control from Malaysian sole franchisee
Taiwan-based La Kaffa International Ltd, the franchisor of Chatime beverage outlets, will terminate its contract with its sole Malaysian franchisee due to disagreement on royalty and ingredient sources.
La Kaffa chairman Henry Wang said the company would terminate its contract with Loob Holdings Sdn Bhd with immediate effect. Wang said La Kaffa would assume management of all Chatime stores in Malaysia.
“Food and beverage products can easily be substituted. Businesses must continue to reinvent themselves by introducing new brands and products based on market demand to attract customers,” he said at a press conference here today.
La Kaffa executive vice president Teresa Wang said: “Due to disagreements with Loob Holdings, we have no choice but to make this painful decision.”
Chatime entered the Malaysian market in 2010. According to Chatime’s website, the franchise was founded in 2005.
Today, there are over 800 Chatime outlets across countries, including China, Australia and the U.S., the website indicated.”
There were no other media reports about this and Bryan Loo, CEO of Loob Holding and also the master franchisee of all Chatime outlets in Malaysia responded in his Facebook Page.
“I’m just wanted to take a moment to thank you everyone for being in my life when times is bad. Let me assure our Malaysian customers that all Chatime outlets resume its business operation as usual offering similar quality of products n dedicated services that we’ve built up over the past 6 years no one would ever deserved to claim anything out of the blood and sweat of #Loobies ! Yessss Chatime was a brand born in Taiwan but it was purely raised in Malaysia by Malaysians. You might think you will be able to get away with the brand, but you will never belittled our spirits behind the brand. There is always a light at the end of every tunnel. See you there!
#bornintaiwanraisedinmalaysia #greater2017 ❤️”
Then, an official statement from Chatime Malaysia on this matter.
“All Malaysian Chatime outlets operating as usual
CHATIME MALAYSIA·FRIDAY, JANUARY 6, 2017
Kuala Lumpur, Fri. – All 165 Chatime outlets in Malaysia are operating as usual under master franchisee Loob Holding Sdn Bhd (the Company).
Bryan Loo, CEO of Loob Holding, said this in response to news of a purported termination of the franchise agreement between Loob Holding and La Kaffa International of Taiwan (‘La Kaffa’) by La Kaffa which was released in the media today.
Loo said the company will respond to the matter upon seeking legal advice.
During this process, all Chatime outlets will operate as usual.
“Let me clarify that although the franchisor owns the brand, all Chatime outlets in Malaysia are owned and operated by the company, either through direct ownership, by sub-franchisees or in joint-venture with sub-franchisees.
“Let me assure our Malaysian customers that all our outlets continue to offer the same quality products and excellent service that the Company has built up over the past six years.
“In fact, many of our customers refer to Chatime as a brand born in Taiwan but raised in Malaysia,” he added.
The Company is currently seeking legal advice on the purported termination and will keep all stakeholders updated accordingly.”
We always knew Chatime as a Malaysian brand and little did we know it is from Taiwan. Bryan Loo built the brand in Malaysia from scratch to 165 outlets now. Chatime Malaysia outlets will operate as usual for now.